National Bank sees earnings climb in Jan-Sept

National Bank, Greece’s second-largest lender by market value, on Tuesday reported higher net earnings in the first nine months of 2023 compared with the same period a year ago as net interest income rose.

NBG, 40% owned by the country’s HFSF bank rescue fund, said net earnings reached 791 million euros from €680 million in the first nine months of 2022.

Net interest income grew by 73% year-on-year in the nine months to €1.64 billion due to higher margins as the European Central Bank raised interest rates.

“Despite the rapid rise in interest rates, loan activity was solid, up by 5% during the past 12 months, led by corporate demand,” the bank’s Chief Executive Officer Pavlos Mylonas said in a statement.

The bank’s nonperforming loan exposure (NPE) ratio fell to 3.7% at the end of September from 6.1% a year earlier, with Mylonas noting that there were no new net NPE inflows in the third quarter.